First-quarter earnings for Santa Fe Pacific Gold (NYSE), while strong, are down slightly from a year ago.
Net income was US$12.3 million (or 9 cents per share), just off from US$13.4 million (or 12 cents per share) for the same period last year.
Revenue was US$84.7 million (including US$84.3 million in gold sales), which is little-changed from the previous first quarter’s figure of US$84.3 million (and US$82.5 in gold sales).
The increase in gold sales reflects production of 219,000 oz. at a higher gold price of US$400 per oz. Last year’s first-quarter production was 216,000 oz. at US$394 per oz.
Cash costs remained low at Santa Fe’s Twin Creek, Lone Tree and Mesquite gold mines (US$161, US$235-245 and US$227 per oz., respectively), although mill and heap grades declined at Twin Creeks and Mesquite. Also, cleanup of the pit wall slide at Twin Creeks is progressing faster than expected, says Patrick James, chief executive officer of Santa Fe.
At the end of March, Santa Fe completed a US$400-million, 5-year, revolving-credit facility with a group of 13 commercial banks. This replaces a US$190-million facility and will be applied to development projects.
Meanwhile, Santa Fe has been issued an exploration and mining licence for the Sharaltyn joint venture by the government of Kazakhstan. The company is required to spend US$6 million over five years to earn a half interest in the property, which is in the vicinity of the 6-million-oz. Bakyrchik mine.
Santa Fe has also received a reconnaissance licence to explore the Bui greenstone belt in Ghana, West Africa.
Be the first to comment on "Santa Fe hikes quarterly output"